Implications of Oil Price Volatility on China

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
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1ECONOMICS ASSIGNMENT
Table of Contents
Introduction......................................................................................................................................2
Implications of Oil Price Volatility on China..................................................................................2
Government policy framework........................................................................................................5
Recommendations and Conclusion..................................................................................................6
References........................................................................................................................................8

2ECONOMICS ASSIGNMENT
Introduction
In the contemporary period, one of the recent issues having noticeable impacts on almost
all the global economies of the world is the concerning issue of oil price volatility in the global
scenario. Oil being one of the most important raw materials for any industry across any corner of
the world, much of the dynamics in the industrial sector as well as in the overall economic
situations of the countries depends on the oil price fluctuations and volatility (Allen 2016). The
report tries to analyze the impacts of oil price fluctuations on one of the most prominent
contemporary economies, China, critically analyzing the policy and strategy frameworks present
in the country to combat the concerned issue.
Implications of Oil Price Volatility on China
The most common and widely used convention for the purpose of measuring the
dynamics in the international oil price across time is the West Texas Intermediate, which is
globally used for the purpose of measuring and reporting the changes in the oil prices across the
globe (Chen and Hsu 2012).